28
8
or other productive enterprises concerned, and strict account will be rendered from time to time to the said Trustees. The amounts attributable to the service of such loans will be paid to the said Trustees and by them applied to educational purposes at the earliest opportunity."
I have also the honour to acknowledge the receipt of your Excellency's note, which reads as follows :-
· With regard to the constitution, powers and proceedings of the Purchasing Commission in London referred to in my note of to-day's date on the subject of the disposal of the British share of the Indemnity of 1901, I have the honour to state that it is my understanding that—
1. The term of office of a member of the Commission (other than the chairman) shall be three years, subject to reappoint- ment, but a member may at any time resign his office.
2. The proceedings of the Commission shall not be invali- dated by any vacancy among its members, provided, however, that no decision of the Commission shall be taken in the absence of a quorum, which shall be constituted by any four of its members.
3. The Commission may provide itself with such offices and employ such officers, expert advisers, accountants and agents as it deems necessary for the proper discharge of its functions.
感情
4. The accounts of the Commission shall be made up to such date in each year and audited by such persons as the Com- mission may determine and the Commission shall submit to the Chinese Government a summary of those accounts and of its transactions during the year and cause it to be published.
5. Subject to the above provisions and the conditions set forth in the above-mentioned note, the Commission may regulate its own procedure and make standing orders governing the con- duct of its business, whether by the Commission or by committees of the members thereof."
I have also the honour to acknowledge the receipt of your Excellency's note, which reads as follows:-
"I have the honour to acknowledge the receipt of your Excellency's note of to-day's date on the subject of the disposal of the balance of the British share of the Indemnity of 1901, which contained the following proposal from His Majesty's Government in the United Kingdom of Great Britain and Northern Ireland :-
---
That a sum of £265,000 and a further sum of £200,000 be set aside from the accumulated funds now on deposit, to be donated respectively to the Hong Kong University for the education of Chinese students and to the Universities' China Committee in London for the promotion of closer cultural rela- tions between China and the United Kingdom. The grant to the Universities' China Committee will be invested as an endowment fund, the proceeds of which will be used inter alia for inviting eminent Chinese to give lectures in the United Kingdom,'
of
9
In reply I have the honour to state that the Chinese Govern- ment is in agreement with the above proposal."
I have the honour to inform your Excellency that I duly com- municated your notes to lis Majesty's Government in the United Kingdom of Great Britain and Northern Ireland, who have instructed me to inform you in reply that they appreciate and approve the proposals suggested by your Government as to the future utilisation of the balance of the British share of the Indemnity, and that they confirm your Excellency's understanding that the proposed Purchas- ing Commission in London will be exempt from all taxation in respect of any income accruing to it, whether by reason of the payment to it any of the moneys specified in your first note above referred to or from the deposit or investment of any part of such moneys as is not required for its immediate use, and also confirm your Excellency's understanding in regard to the constitution, powers and proceedings of the said Commission. The Act of Parliament, the enactment of which is required, will be drafted so as to give effect thereto. His Majesty's Government believe that the rehabilitation and construc- tion of railways will not only provide valuable educational endow- ments but will also in themselves promote trade and prosperity and will thus advance the mutual interests of both countries. They especially appreciate the intention of the Chinese Government to place orders for materials with British manufacturers in the United Kingdom of Great Britain and Northern Ireland, and they consider the method of carrying out this intention as suggested in paragraphs 5 and 6 of your Excellency's note of the 19th September should prove satisfactory to both countries. They will be glad to avail themselves of the proposals, subject, of course, to the terms of the existing con- tracts, both those between British firms and Chinese authorities and those between British firms and their foreign partners. His Majesty's Government will, therefore, subject to the necessary legis- lation being passed in Parliament and upon it coming into force, remit all payments of the Indemnity as from the 1st December, 1922, and transfer to the proposed Purchasing Commission in London all the deposited funds, less the expenditure already incurred under sections I (1) and I (3) of the China Indemnity (Application) Act of 1925 and subject to the deduction of the two sums of £200,000 and £265,000 set aside for the Universities' China Committee and the Hong Kong University respectively, and will pass future payments to the control of the Chinese Government in the manner and subject to the conditions provided in the notes referred to in paragraphs 1 and 2 of this note.
I avail, &c.
MILES W. LAMPSON,
29